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London Stock Exchange Group plc Sponsored ADR (LSEGY) AI Stock Analysis
London Stock Exchange Group plc Sponsored ADR
(Other OTC:LSEGY)
The score is driven primarily by solid financial performance (strong cash generation and improving profitability) and a very positive earnings call with raised guidance and significant capital returns. Technicals are supportive with price above key moving averages, though short-term indicators look stretched. Valuation is the main drag given the premium P/E and only moderate dividend yield.
London Stock Exchange Group plc Sponsored ADR (LSEGY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $64.45B
- Dividend Yield
- 1.67%
- Average Volume (3M)
- 851.49K
- Price to Earnings (P/E)
- 33.7
- Beta (1Y)
- 0.52
- Revenue Growth
- 9.77%
- EPS Growth
- 53.99%
- Country
- US
- Employees
- 28,516
- Sector
- General
- Sector Strength
- 55
- Industry
- Financial - Data & Stock Exchanges
London Stock Exchange Group plc Sponsored ADR Business Overview & Revenue Model
Company Description
London Stock Exchange Group plc acts as a vital global financial markets infrastructure provider, delivering a broad array of financial data, sophisticated analytics, news, and index products to clients both within the United Kingdom and across inter...
London Stock Exchange Group plc Sponsored ADR Earnings Call Summary
The call presented a robust set of operational and financial positives: strong organic revenue growth (8.4%), accelerating subscription growth (6.3%), double‑digit EBITDA and EPS expansion, record free cash flow per share growth (37%) and active capital return. Product and AI engagement showed clear customer traction (MCP adoption, Workspace AI metrics) and Markets and Data & Feeds businesses delivered notable momentum. Key challenges include higher net finance expense from rising rates, FX headwinds to reported revenue, timing effects from the SwapClear revenue‑share change that create an H2 margin headwind, and that MCP monetization is still early (limited 2026 impact). Overall the highlights materially outweigh the lowlights, with management raising revenue and margin guidance and expressing confidence in execution and medium‑term prospects.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
LSEG raised full‑year guidance, now expecting revenue growth of 7.0–7.5% (up from a prior view skewing to the upper half of 6.5–7.5%), and an EBITDA margin improvement of around 100 basis points in constant currency (H1 underlying margin 52.4% vs 49.8% a year ago; H1 adjusted EBITDA +14%), while flagging that H2 will show a slight year‑on‑year EBITDA margin decline of ~50 bps owing to a 70 bp timing headwind from the SwapClear revenue‑share change; management also expects full‑year capital intensity of ~9.5% of total income, equity free cash flow of at least GBP 2.7 billion (H1 free cash flow GBP 1.2bn, up 29%; free cash flow per share +37%), adjusted net finance expense roughly GBP 300m for the year (GBP149m in H1), an effective tax rate of 24–25%, net debt/EBITDA of 2.1x at June (midpoint of target range), around GBP25m of one‑off H2 transformation costs, and a further GBP1.4bn of share buybacks planned to be executed by February 2027 (having returned GBP2.6bn in H1 and increased the interim dividend 17% to 55p), with subscription revenue on track for the 2026 target of ~6.5% (H1 subscription growth 6.3%, organic revenue H1 +8.4%).
London Stock Exchange Group plc Sponsored ADR Financial Statement Overview
Summary
Overall fundamentals are solid: steady revenue growth, strong operating profitability, and robust free-cash-flow conversion (FCF nearly matching net income in 2025). Offsetting factors are uneven margin patterns year-to-year and a noticeable rise in leverage into 2025 alongside only moderate ROE (~6%), which caps the score.
Income Statement
72PositiveBalance Sheet
64PositiveCash Flow
70Positive| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.11B | 8.86B | 8.38B | 7.74B | 6.54B |
| Gross Profit | 3.67B | 7.68B | 7.24B | 6.68B | 5.68B |
| EBITDA | 4.46B | 4.30B | 3.62B | 3.32B | 2.66B |
| Net Income | 1.22B | 685.00M | 761.00M | 1.30B | 3.13B |
Balance Sheet | |||||
| Total Assets | 795.30B | 732.82B | 805.01B | 835.16B | 787.11B |
| Cash, Cash Equivalents and Short-Term Investments | 3.95B | 2.13B | 2.25B | 3.44B | 2.67B |
| Total Debt | 11.70B | 9.96B | 9.70B | 8.83B | 8.38B |
| Total Liabilities | 773.09B | 707.67B | 779.07B | 807.00B | 761.59B |
| Stockholders Equity | 19.74B | 23.01B | 23.81B | 26.00B | 23.64B |
Cash Flow | |||||
| Free Cash Flow | 3.42B | 2.39B | 2.82B | 1.77B | 1.94B |
| Operating Cash Flow | 3.54B | 3.40B | 2.94B | 2.74B | 2.60B |
| Investing Cash Flow | -2.00B | -1.28B | -1.37B | -909.00M | 3.68B |
| Financing Cash Flow | -1.04B | -2.16B | -1.09B | -1.47B | -5.35B |
London Stock Exchange Group plc Sponsored ADR Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSEGY, the sentiment is Positive. The current price of 31.81 is above the 20-day moving average (MA) of 29.42, above the 50-day MA of 28.86, and above the 200-day MA of 29.04, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 81.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSEGY.
London Stock Exchange Group plc Sponsored ADR Peers Comparison
Overall Rating
CME85Outperform
ICE83Outperform
CBOE80Outperform
NDAQ79Outperform
SPGI79Outperform- LSEGY73Outperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CME | 85Outperform | $108.50B | 24.73 | 16.24% | 3.73% | 8.99% | 18.85% |
| ICE | 83Outperform | $94.36B | 22.94 | 14.08% | 1.21% | 13.51% | 33.41% |
| CBOE | 80Outperform | $35.04B | 23.81 | 26.84% | 0.90% | 14.31% | 50.84% |
| NDAQ | 79Outperform | $58.95B | 28.71 | 17.29% | 1.09% | 11.94% | 30.40% |
| SPGI | 79Outperform | $135.25B | 27.74 | 17.54% | 0.83% | 5.99% | 22.20% |
| LSEGY | 73Outperform | $60.98B | 33.68 | 7.35% | 1.67% | 9.77% | 53.99% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LSEGY | London Stock Exchange Group plc Sponsored ADR | 31.81 | 1.04 | 3.38% | |
| CBOE | Cboe Global Markets | 335.53 | 91.10 | 37.27% | |
| CME | CME Group Inc | 303.14 | 48.85 | 19.21% | |
| ICE | Intercontinental Exchange Inc. | 168.85 | 25.17 | 17.52% | |
| SPGI | S&P Global | 466.55 | 0.58 | 0.13% | |
| NDAQ | Nasdaq OMX | 106.23 | 20.97 | 24.59% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 22, 2026